Coalition party PVV splits from Cabinet over Box 3 asset tax plans
The PVV, the largest coalition party, has pulled its support from the current bill for a new asset tax system in box 3. PVV parliamentarian Henk de Vree wants State Secretary Tjebbe van Oostenbruggen for Taxation to come up with a “new, better thought-out” proposal, Financieele Dagblad reports.
Van Oostenbruggen (NSC) planned to send his bill for the new box 3 tax to parliament for consideration within a few weeks. His proposed system would levy taxes on actual earnings from savings and investments, replacing the previous system that taxed a presumed fixed return, which the Council of State declared unlawful in 2021. Under the plan, most investments would fall under a "wealth growth tax," taxing unrealized value increases. Real estate and start-up shares, however, would be subject to a "realized capital gains tax."
In December last year, The Council of State, the Netherlands’ highest administrative court, also criticized the planned new system to tax assets and investments, calling it far too complicated for both taxpayers and the Tax Authority. But every year that the new system is delayed costs the treasury approximately 2 billion euros, the Ministry of Finance previously said.
In January, Van Oostenbruggen therefore determined that the government would push through with the new system, despite the criticism. “I see no other viable route,” Van Oostenbruggen said at the time. “Ultimately, you must choose the least harmful option, and that is exactly what I am doing.” The aim was for the new system to take effect in 2028.
The PVV pulling its support on Wednesday evening caused astonishment among other parliamentarians, according to FD. Coming up with a new proposal will almost certainly put the 2028 deadline out of reach, resulting in another year of the government being unable to lawfully tax wealth in box 3.
